Lees Foods acquired by Finsbury in £5.7m deal
Finsbury has purchased 100% of the share capital of Lees, with plans to leverage the manufacturer’s significant capability in the sweet treats category to further diversify its own product range into ‘areas with high growth potential’.
The consideration for the acquisition is on the basis that Lees is acquired cash and debt-free and with an agreed level of working capital. The consideration is being funded entirely from the group’s existing debt facilities.
‘Strategic acquisition’
John Duffy, chief executive of Finsbury Food Group Plc, commented: “We are delighted to announce the strategic acquisition of Lees Foods Ltd, as we consolidate our position in the sweet treats sector and grow our manufacturing presence in Scotland.”
Established in 1931, Lees employs more than 200 staff at its site in Coatbridge, Scotland. The manufacturer’s adjusted underlying earnings before interest, tax, depreciation and amortisation is £900,000 from adjusted underlying net sales of £21.6m.
“Lees currently has a well-established position in the UK meringue category and strong relationships across a high quality and diverse customer base,” Duffy added.
‘Build on existing relationships’
“This provides Finsbury with the opportunity to build upon both businesses’ existing retail relationships and unlock further commercial opportunities, including out of home. We look forward to welcoming Lees to the wider Group.”
Finsbury’s acquisition of Lees Foods comes just under a year after it agreed to acquire a further 35% of Lightbody-Stretz for €7.14m from Phaste, bringing its stake to 85% of its shares, via its subsidiary Lightbody Holdings.
Lightbody-Stretz is the holding company of the group's European distribution business Lightbody Europe, which operates mainly in the French and Benelux markets and has distributed products produced by Finsbury for nearly 20 years.
Meanwhile, Sykes Seafood has acquired the trading assets of shellfish processor The Big Prawn Co Ltd for an undisclosed sum.
